02 March 2009

PHARMACEUTICALS AND HEALTH CARE

As if the destruction of the energy industry were not enough we are about to see the destruction of the American pharmaceutical industry by allowing cheaper imports from abroad, faster generic approval, and more FDA roadblocks to new drugs. While to some this may seem good, what incentive remains for anyone to develop new drugs and devices? A new drug can cost over a billion dollars to develop, with at best only a 10% chance of success. If there is even less chance to recoup the investment why should anyone bother to develop new products or continue to manufacture drugs in this country. Thus we will see the decimation of another industry at which we do well. As a result in the long run everyone’s health will suffer. With more bureaucratic blocks, many will die as needed drugs cannot get to market. This leaves pharmaceutical companies with little option other than gearing up or acquiring low margin generic production, or purchasing distressed biotech firms. When people’s lives are at stake the only criteria that should matter is whether a drug is harmful or not, not the preferences of bureaucrats.

As stated earlier, in order to accommodate a fluid minority without coverage the health care of everyone else is going to be diminished. Tom Daschle says health care reform “will not be pain free,” and that." "Seniors should be more accepting of the conditions that come with age instead of treating them." That obviously means a coming wave of rationing and denial of service as bureaucrats decide on the efficacy of treatments. What is to prevent them from deciding someone is too old to bother with and should just go off and die? The American pre-eminence on the cutting edge of new technology and treatment that has given us the best care in the world will end as innovation ceases.